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Assume that both $x$ and $Y$ are well$-$diversified portfolios and the risk$-$free rate is $8\%.$ Portfolio $x$ has an expected return of $14\%$ and a beta of $1.$ Portfolio $Y$ has an expected return of $9\mathrm{.}5\%$ and a beta of $0\mathrm{.}25.$ In this situation, you would conclude that portfolios $x$ and $Y$

Multiple Choice

$$ are in equilibrium

offer an arbitrage opportunity

are both underpriced

are both fairly priced